Ndola — FINANCE and National Planning Minister Ng'andu Magande yesterday presented three bills for amendments, including the Income Tax Bill which seeks to introduce a variable profit tax for the mining sector.

The amendments to the Income Tax, Value Added Tax (VAT) and the Customs and Excise Acts are as a result of new measures introduced in the 2008 national Budget as presented by Mr Magande last month.

When introducing the notice of motion for the House to resolve into a Committee of Ways and Means to consider the presentation of the three bills, Mr Magande said there was need to expeditiously amend the three laws.

He said the Income Tax Bill also sought to introduce a graduated windfall tax for the mining of base metals and precious metals and also introduce a reference price for determining the values for the windfall tax.

The mining sector would also have a reduction in capital expenditure deductions from 100 per cent to 25 per cent per year.

The Bill also seeks to increase the tax threshold of income for individuals from K6 million to K7.2 million per annum while an individual who employs a person with disability would have an allowable deduction increased from K500,000 to K1 million.

The Bill further requests for deduction of mortgage interest to any Zambian who obtains a loan secured by a mortgage on a residential property.

Withholding tax rate applicable on interest earned by an individual on a savings account, deposit account or building society account would reduce from 25 per cent to 15 per cent per annum.

The allowable expenditure for low-cost housing would be increased from K2 million to K20 million and the amount of tax not payable in a charge-year would rise from K20,000 to K100,000 per charge-year.

On the Customs and Excise Bill, he sought to introduce an export levy on cotton seed and copper concentrates and would also revise the rates of customs and excise duty payable on certain goods.

The Commissioner General would be empowered to make advance tariff rulings in respect of imported or goods to be exported.

The Value Added Tax Bill, among other things, provides for the eligibility of diplomats and other designated officials to claim Value Added Tax paid on eligible goods and services while the minister of Finance would be empowered to remit tax due that was not recoverable.

The three bills passed first reading.